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Choice quotes from article:

[...]

"Today, word escaped from Asian component manufacturers that Microsoft have accelerated the planning for the redesigned Xbox 360 mainboard. Project ‘Falcon’ as it’s known internally aims to reduce the size of the main console components such as CPU & GPU from the standard 90-nanometer process down to 65-nanometer."

[...]

"Moving from 90 to 65 nanometer fabrication could in fact reduce component costs by a staggering 50%"

Click through for the entire artile: 

http://www.xbox360wire.co.uk/2007/07/18/redesigned-falcon-xbox-360-coming-sooner-rather-than-later/